Which Statement Relating to the Moving Average Method of Costing

question 47

Multiple Choice

Which statement relating to the moving average method of costing inventories, used with the perpetual inventory system, is correct?

• A) A new average cost is calculated after each sale.
• B) A new average cost is calculated after each purchase.
• C) A new average cost is calculated at the end of each month.
• D) A new average cost is calculated after each sale and each purchase.

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